What is growth hacking? Experiments, funnels and smart growth
Growth hacking is a way of growing a business by running fast, low-cost experiments across the whole customer journey, measuring results and keeping what works. The name sounds like tricks, but good growth work is disciplined: a clear goal, a hypothesis, a test and an honest look at the data.
Where the idea came from
The term became popular with early-stage technology startups that had small budgets and needed to find customers quickly. Instead of big brand campaigns, they looked for clever, measurable ways to grow, often built into the product itself, such as referral rewards or easy sharing.
The AARRR funnel
Growth teams often use a five-stage model, sometimes called “pirate metrics”:
- Acquisition: how people find you.
- Activation: whether they have a good first experience.
- Retention: whether they come back.
- Referral: whether they tell others.
- Revenue: whether they pay.
The biggest wins are often not in acquisition. Fixing a weak first experience or poor retention can grow a business more than doubling ad spend.
Choose a North Star metric
A North Star metric is the one number that best reflects the value customers get, such as weekly active users, orders per month or classes attended. It keeps experiments focused on real value rather than vanity numbers.
How to run a growth experiment
- Find the bottleneck: which funnel stage loses the most people?
- Write a hypothesis: “If we shorten the signup form from six fields to three, more visitors will start a free trial.”
- Prioritise: score ideas by expected impact, confidence and ease.
- Test: change one thing, for a defined period, with enough visitors to judge.
- Learn: record the result, even when it fails, and decide what to try next.
Ideas small businesses can test
- A simple referral offer for existing customers.
- A shorter, clearer landing page for the main offer.
- A welcome email or WhatsApp sequence for new enquiries.
- Asking satisfied customers for reviews at the right moment.
- Free tools or templates that attract the right audience.
- Partnerships with complementary local businesses.
What growth hacking is not
It is not spam, fake reviews, bought followers or misleading offers. Those may produce a short spike, but they damage trust and often break platform rules. Sustainable growth comes from making something people value and removing friction from every step.
Learn experimentation, funnels and growth planning in our Growth Hacking Course.